RBZ clears auction forex backlog

Harare (New Ziana) – The backlog of foreign currency allotments under the auction system has been cleared, the Reserve Bank of Zimbabwe said on Thursday.

The Reserve Bank of Zimbabwe introduced weekly forex auctions in 2020 to improve access to foreign currency.

But, despite its earlier successes, which include price stability and pushing down black market rates, the auction system faced challenges chiefly the late disbursement of allocations.

This has prompted many businesses to turn to the black market for foreign currency which has the net effect of pushing up the parallel market exchange rate.

In a statement on Thursday, central bank governor John Mangundya said it had cleared the auction backlog courtesy of improved forex inflows.

“The Reserve Bank of Zimbabwe (the Bank) is pleased to advise the public that it has cleared the backlog of foreign exchange allotments under the Foreign Exchange Auction System. This development is a result of improved foreign exchange inflows in the Country,” he said.

“Going forward, the Bank will abide by the Foreign Exchange Auction Rules and ensure that foreign currency is available to successful bidders within 14 days from the date of auction. This will go a long way in maintaining a stable foreign exchange rate and sustaining financial stability in the economy,” he added.

New Ziana